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200,000 Tons/Year PVC Resin Project of Siping City

Information Source: Jilin Provincial Commercial Information Center
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1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

As one of the five universal resins, Polyvinyl Chloride (PVC) is important in many application fields due to its excellent mechanical properties, barrier properties, and flame retardant properties. PVC is widely used in developed countries, distinguished by product types: hard products account for up to 70%, while soft products and adhesives account for 10%, respectively. In the fields of application, the building materials field accounts for 65%, the packaging field accounts for 85%, the electronic and electrical field accounts for 7%, the furniture and decoration field accounts for 5%, the general consumer goods field accounts for 4%, and other fields account for 11%. In the field of construction, PVC is mainly used for producing various pipes, rainwater systems, ceilings, wallpapers, door and window profiles, as well as interior and exterior wall panels and decorative materials. With the increasing trend of “replacing steel with plastic” and “replacing wood with plastic” in the global building materials industry, the application of PVC in the construction field is steadily increasing.

1.1.2 Market prospect

(1) Analysis of the Current Market Status of PVC Resin

As one of the five universal plastics, Polyvinyl Chloride (PVC) has been widely used in various fields such as building materials, industrial products, daily necessities, floor leather, floor tiles, artificial leather, pipes, wires and cables, packaging films, bottles, foam materials, sealing materials, fibers, etc. due to its excellent flame retardancy, heat resistance, and corrosion resistance. As the world’s largest producer of PVC, this material is regarded as a resin variety with strategic advantages in China. Due to its energy intensive nature and close connection with economic development, the PVC industry is currently experiencing rapid growth worldwide. With the advancement of technology and social development, the rise of emerging industries continues to drive the demand for plastic products, indicating a huge market potential for PVC in the future.

By now, PVC industry in China is in a critical stage of transformation towards the mid to high end. Taking PVC products as the core and radiating the upstream and downstream industrial chain, enterprises in China are encouraged to adhere to technological innovation and upgrading, which is expected to achieve the transformation and upgrading of the industrial chain.

In terms of supply, global PVC production capacity has been increasing year by year, mainly concentrated in the Asia. China, India, and Southeast Asian countries are the largest producers and exporters of PVC all over the world. The United States, Europe, and the Middle East also have certain PVC production capacity. In terms of demand, the global demand for PVC mainly comes from the construction industry, wire and cable, packaging, automotive industry, and medical equipment. With the growth of the global economy and the increase in population, the rising demand for PVC will be driven by the construction industry, infrastructure construction, and housing. The demand for PVC in the power industry is also increasing, especially in the field of wire and cable insulation materials. According to statistics, the global PVC industry’s production capacity was approximately 65.6 million tons in 2024.

China is not only one of the world’s largest producers and consumers of PVC, but also has a huge market size in the PVC industry. Chinese market has high demand for PVC, which is widely used as a basic material in various fields such as construction, electricity, automobiles, home appliances, packaging, and medical care. The demand is stable and continues to grow. The development of the Chinese economy, the advancement of urbanization, and the improvement of people’s living standards have a positive impact on the demand for PVC market and promote the expansion of market size.

With the development of the economy and the improvement of people’s living standards, the demand for PVC has correspondingly increased, especially with the advancement of urbanization, which further enhances the demand for PVC. With the continuous development of the domestic economy and the advancement of urbanization, the demands for PVC in fields such as construction, electricity, automobiles, and packaging are expected to continue to grow. Furthermore, emerging industries such as new energy vehicles and electronic products will also bring new demand growth points to the PVC market.

(2) Market prospect of PVC resin

In recent years, the market size of Polyvinyl Chloride (PVC) has continued to expand, demonstrating strong growth momentum. As a major producer and consumer of PVC worldwide, Chinese PVC market has grown significantly in size. Data showed that in 2022, the PVC market size in China was approximately 159.372 billion yuan, and by 2023, the market size had grown to approximately 215.556 billion yuan. This growth trend is mainly due to the sustained economic development and accelerated urbanization process, with the increasing demand for PVC in various fields such as construction, wire and cable, packaging, and medical care. Furthermore, the global PVC market size has also shown a stable growth trend, reaching US$ 42.7 billion in 2023, and is expected to continue its growth trend in the coming years.

The sustained growth in demand for PVC market is mainly due to the recovery of the global economy and the acceleration of infrastructure construction. In the field of construction, PVC is widely used in the manufacturing of pipes, doors and windows due to its advantages such as low cost, good weather resistance, and easy processing. Furthermore, the demand for PVC in the fields of wire and cable, packaging materials, and emerging industries such as automotive manufacturing, 3D printing, and healthcare is constantly increasing, bringing new growth points to its market.

Polyvinyl Chloride (PVC) is a thermoplastic resin polymerized from vinyl chloride monomer with excellent weather resistance, corrosion resistance, etc. China is one of the largest PVC production and consumption countries in the world, which market size continues to expand. It is expected that in the coming years, the PVC market size will continue to maintain a growth trend with the continuous growth of market demand and the promotion of technological innovation.

In this market context, the construction of Annual Production of 200,000 Tons of PVC Resin Project in Siping City is particularly timely and necessary. This project not only meets the growing demand for PVC products in China, but also has the potential to further enhance China’s competitiveness in the global PVC market. With the continuous technical advancement, PVC products are also constantly upgrading and replacing, and the research and application of new environmentally friendly PVC materials will become a new trend in the future market. The Siping Project will closely follow this trend and adopt advanced production technology and environmental protection measures to ensure that products meet international standards while reducing their impacts on the environment.

Furthermore, the project will rely on the resource advantages and industrial foundation of Siping City and surrounding areas, and form an industrial cluster effect by optimizing resource allocation and extending the industrial chain. This will not only help reduce production costs and improve economic efficiency, but also drive the development of related industries, promote employment, and make an undeniable contribution to the local economy. Driven by both policy support and market demand, Annual Production of 200,000 Tons of PVC Resin Project in Siping City is expected to become an important force in promoting regional economic development.

1.1.3 Technical analysis

The process technology involved in the project is the mainstream mature advanced technology in China by now, and the equipment involved in the project is selected from leading national equipment.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The Outline of the 14th Five-Year Plan for National Economic and Social Development proposed to implement the deployment of promoting industrial modernization; Promoting the research and innovative application of high-performance PVC, promoting the transformation, upgrading, and healthy development of the PVC industry, is in line with national strategies and the inherent needs of industry development. PVC should be used more in the construction of major national projects. This project is within the scope of national policy support, which development will receive strong support from governments at all levels.

(2) Industrial advantages

Following the development strategy of “one zone and five chains”, Shuangliao City mainly implements the development of “five major industries”, plans to construct industrial chain projects, and forms industrial clusters. The power energy industry aims to introduce clean energy projects such as wind power and photovoltaic power generation to large state-owned enterprises and other leading green power enterprises, and build a national level clean energy production base. By now, the Wind Turbine Manufacturing Project of Yunda New Energy (Shuangliao) Co., Ltd. and the Lithium Battery Negative Electrode Material Production Project of Zhongjian Huida (Jilin) Emerging Energy Co., Ltd. have settled in Shuangliao. Driven by both major glass enterprises of Yingxin Glass and Jinken, the glass building materials industry undertakes the introduction of silica sand and glass deep processing enterprises, accelerating the pace of extending the glass building materials industry chain. The chemical industry, using chlor alkali as raw material, has undertaken and introduced fine chemical projects such as phosphorus-based flame retardants, titanium tetrachloride, zirconium tetrachloride, pyridine chloride, chlorinated phenol series, aluminum trichloride, and chloroacetic acid to settle in Shuangliao. The agricultural product processing industry plans to introduce meat processing and “Central Kitchen” enterprises around beef cattle breeding and pig farming in Muyuan, enriching the deep processing of agricultural products, animal husbandry, and the deep processing industry of animal husbandry. Based on the opportunities of the construction of urban and rural cold chain logistics bases and Wanbang agricultural product trading and distribution center projects as opportunities, the modern circulation service industry aims to create an important node city for the logistics industry in southwestern Jilin. Focus on JD’s warehousing and logistics projects, vigorously develop smart logistics and cold chain logistics, and build a modern logistics hub base in western Jilin Province.

(3) Location advantages

Shuangliao City is located in the southwest of Jilin Province, at the junction of Jilin, Liaoning, and Inner Mongolia provinces, and is known as the “thoroughfare of the three provinces”. Its transportation network includes Qiqihar-Siping Railway and Dahushan-Zhengjiatun Railway, and there are three highways running through the entire area: Shuangliao-Nenjiang Expressway, Daqing-Guangzhou Expressway, and Changchun-Shenzhen Expressway. Furthermore, there are 2 national highways and 1 provincial highway in Shuangliao City, forming a transportation network with railways and highways as the backbone, greatly facilitating economic exchanges with the outside world.

The transportation advantages of Shuangliao City are not only reflected in its geographical location and transportation network, but also in its potential as a logistics hub. Shuangliao City is located in the central area of Northeast Asia and serves as a bridgehead for the southern opening of the Harbin Great Wall City Cluster, with a radiation area of 1.24 million k. Highways and high-speed railways have incorporated Shuangliao into the “Half-Hour Metropolitan Area” of Shenyang and Changchun, further enhancing its transportation convenience.

The location and transportation advantages of Shuangliao City are obvious. It is not only the transportation convenient, but the geographical location is also superior, making it an important transportation hub and logistics distribution center in Northeast China.

(4) Talent advantages

Siping has several universities including Jilin Normal University, Boda College of Jilin Normal University, Jilin Agricultural Engineering Vocational and Technical College, Siping Vocational College, as well as the ongoing establishment of Hongzui Vocational and Technical College, Jilin University Siping Medical College, and Siping Radio and Television University, etc. Among them, Jilin Normal University is a key university in Jilin Province, with 16,302 full-time undergraduate students, 1,844 graduate students, 336 international students, and 15,131 adult education students. It can cultivate thousands of higher education talents to the society every year. There are many colleges and universities in surrounding cities such as Changchun, Harbin, and Daqing, which can provide more than 500,000 high-level talents annually. These talents can provide technical support for construction of the project.

Shuangliao has obvious advantages in labor resources, with a relatively high proportion of professional and technical talents in the Northeast urban agglomeration. The labor forces are in a dividend period, with relatively low labor costs and a large number of high-quality technical teams that can meet the needs of various enterprises.

1.2 Contents and scale of project construction

The overall planned area is 100,000 , with a designed production capacity of 200,000 tons of PVC resin. The construction of a production workshop includes an aggregation section, a drying section, and a packaging section; and it is equipped with public engineering facilities, environmental protection facilities, fire engineering, production service facilities, etc.

There are various grades of PVC resin production, such as SG-1 to SG-8 for eight types of general PVC resin, and BY4000, BY1600, BY600, BYFP1500, BY900 for special/specialized PVC resin. Furthermore, there are grades of chlorinated polyvinyl chloride resin (CPVC) such as R207, R217, R227, R309, etc. (After the project is implemented, select several grades for production based on market demand positioning.)

1.3 Total investment of the project and capital raising

The total investment of the project is 310 million yuan, including the construction investment of 230 million yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 194.96 million yuan, its profit will be 58.49 million yuan, its investment payback period will be 6.5 years (after the tax, including the construction period of 1 year) and its return on investment will be 18.8%.

Note: “10 thousand yuan” in the table is in RMB

1.4.2 Social evaluation

Promoting industrial upgrading: The PVC resin project has improved the technological level of the entire industry chain and promoted the upgrading and development of related industries by introducing advanced technology and equipment. For example, the monopoly of imported materials has been broken by developing medical grade PVC resin, promoting the development of the medical field.

Employment opportunities have been created: During the construction and operation of the PVC resin project, many labors are required, creating a large number of job opportunities, alleviates local employment pressure, and improves the living standards of residents.

Environmental benefits: The PVC resin project reduces environmental pollution during the production process and meets the requirements of sustainable development by adopting advanced production processes and technologies.

1.5 Cooperative way

Sole proprietorship, joint venture and cooperation.

1.6 What to be invested by the foreign party

Funds, other ways can be discussed in person.

1.7 Construction site of the project

Shuangliao City

1.8 Progress of the project

The project proposal has been prepared

2. Introduction to the Partner

2.1 Basic information of unit

Name: People’s Government of Shuangliao City

Address: No. 1980 Liaohe Road, Shuangliao City, Siping City

2.2 Overview of unit

Shuangliao City is located at the junction of Jilin, Liaoning, and Inner Mongolia provinces (districts), adjacent to the Songliao Plain and the Khorchin Grassland, and is known as the “Three Provinces with Chicken Sounds”. The jurisdictional area is 3,121.2 km2.

Shuangliao has a long history, dating back to the Neolithic Age when humans had already multiplied and thrived. It was a place where nomadic and agricultural cultures intertwined. The East and West Liao Rivers meander through here. Originally, the West Liao River had prosperous water transportation. In the first year of the Jiaqing Reign (1796), a person surnamed Zheng opened a shop in the current county seat to provide accommodation for pedestrians. Since then, the number of residents has gradually increased, forming a settlement called Zhengjiatun.

Shuangliao was one of the revolutionary bases that the CPC opened up earlier in the northeast. It is located at the key point with great strategic significance. It was once the seat of the Ximan Branch of the Northeast Bureau of the CPC and the provincial party committees and governments of Liaoxi, Liaoji, and Liaobei. The older generation of proletarian revolutionaries, such as Li Fuchun, Tao Zhu, Huang Kecheng, Lyu Zhengcao, and Yan Baohang, have worked in Shuangliao.

It has developed regional transportation. Shuangliao is the transportation hub of highways and railways in the west of Northeast Region. Siping-Qiqihar Railway and Daqing-Shuangliao Railway pass through Shuangliao City. With four highways i.e. Daqing-Guangzhou Highway, Changchun-Shenzhen Highway, Ji’an-Xilinhot Highway and Nenjiang-Dandong Highway intersecting here, Shuangliao City is the sole node city equipped with 4 highways and 9 highway exits in Jilin Province.

It has rich resources. Silica sand resource is hidden and waiting for use, and Qikeshu silica sand resource is one of the four rich ores in the world, with reserves up to 900 million tons. Relying on the silica sand resource, two giant glass manufacturers in China i.e.Jinken Glass and Yingxin Glass become stationed in Shuangliao, thus making Shuangliao City as the sole glass material characteristic park in Jilin Province, the biggest glass material base in North China, and the nationally planned silica raw material production base in North China.

Chemical basic raw materials are abundant. Shuangliao Haohua Chemical produces 200,000 tons/year of caustic soda, 160,000 tons/year of high-purity acid, and 178,000 tons/year of chlorine gas.

It has rich agricultural and pastoral resources. Located in the “Golden Corn Belt” in the world, Shuangliao City has cultivated area of 2,800,000mu all over the city, with production of grains stable at the phased level of annual 3 billion jin, and it is the biggest livestock collection & distribution center of Jilin, Liaoning and Inner Mongolia Provinces. It has been named as National Grain-Producing County, National Commodity Grain Base County, National Mutton Sheep Base County,National Lean Hog Base County and National Ecological Demonstration County successively.

It has sufficient power supply. Guodian Shuangliao Power Plant is the biggest thermal power generation plant in Jilin Province,with an existing installed capacity of 2 million kW. Shuangliao is also a city with rich wind energy resources in China, where, large state-owned enterprises such as Guodian Group, Huaneng Group, Datang Group, Huadian Group, etc. have developed and constructed wind power generation projects in Shuangliao City successively, with networked installed capacity up to 400,000 kW. Guohua Energy, Huaneng Group, Jilin Puhua Yineng, Jilin Jonoon, Bailun Wind Power and other enterprises are developing and constructing wind power projects with additional installed capacity of 400,000 kW. In the meantime, PV enterprises such as Shuangliao Qingda, Changzhou Tianhe, Xinjiang TBEA and Guangdong Dynavolt, etc. make investment and development of PV projects in Shuangliao City, with networked power generation of 225MW in accumulation by now.

It has integrated development of culture and tourism. It has been successively appraised as National Safe Agricultural Machinery Demonstration County, Whole-process Mechanization Demonstration County, Advanced TCM Unit and County-level Civilization City in the Whole Province, and it has become a provincial-level hygienic city, with characteristic culture integrated in scenic areas. It is equipped with ecological landscapes such as Shuangliao Yimashu Sandy Forest Park, White Crane Natural Reserve, Qixing Lake Park, Jiashutai Lake Wetland Park, Shuangliao Park and Bayi Lake, etc.

2.3 Contact method

Contact person: Huang Xibo

Tel: +86-13844438112

Contact method of the city (prefecture) where the project is located:

Contact unit: Siping Municipal Economic and Technical Cooperation Bureau

Contact person: Wen Dacheng

Tel: +86-434-3260536

E-mail: spjhjjhk@163.com

(责任编辑:李光辉)
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